| The installation of water meters
could cost the State less than €200 million or more than €800
million, depending on the method chosen, the Oireachtas Committee
on the Environment, Transport, Culture and Gaeltacht has heard.
Installation of the meters in every home in the State will
start later this year as part of the Government’s plan to
introduce water charges.
Dr Edgar Morgenroth, associate research professor at the
Economic and Social Research Institute (ESRI),
said research suggested putting water meters inside homes
would cost less than €200 million, if they were provided to
1.48 million households. Placing them at the boundary of properties
would cost more than €800 million.
He called for a cost-benefit analysis of both options. “The
key difference in terms of benefit is that leaks external
to a property are not immediately attributable to the householder
if the meter is located inside the property,” he said. “On
the other hand, internal meters are more likely to be monitored
by householders.”
He advised against giving a free water allowance to people
unable to pay the charges, saying it would not encourage them
to preserve water.
Instead of this, Dr Morgenroth suggested giving a cash allowance,
which would act as an incentive to use as little water as
possible. He also highlighted the huge variation in water
charges levied on businesses around the State.
The price of water in Wicklow, at €3.04 per cubic metre,
was more than double that in Kildare (€1.49), yet both counties
received some of their water from the Liffey, he said.
Dr Morgenroth also raised the idea of regional water charges,
saying the cost of extracting water was low in areas such
as the Shannon basin, but charging the same price for water
throughout the country would remove this comparative advantage.
Meanwhile, Minister of State for Communications, Energy and
Natural Resources Fergus O’Dowd said up to 2,000 jobs a year
would result from the metering programme. He said there would
be national supply contracts for the procurement of boundary
boxes and meters as well as up to 200 local installation contracts.
“The installation of the meters is labour intensive, involving
minor excavation and reinstatement works after the installation
of the meter,” Mr O’Dowd said. “The type of jobs involved
will include general operatives, small-excavator drivers,
plumbers, fitters, supervisors, site agents, contract managers
and accounts and administration staff.”
He said international experience suggested water meters could
reduce consumption by at least 10 per cent.
Source - The Irish Times
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